Pre-Budget Report

I shall deal individually with the points that the hon. Gentleman raised. On debt and household income, he has been a persistent critic both of the Bank of England and the Government, but the figure for debt in relation to income—the debt repayments people have to make—was of the order of 15 per cent. in the 1990s; it is about 8 per cent. now. Of course, individuals have difficult problems that need to be dealt with; we need proper protection and advice for those people, but the hon. Gentleman must not compare a situation in the 1990s, when interest rates were 15 per cent. and people faced mortgage repossessions, with the situation now when interest rates are 5 per cent. [Interruption.] Interest rates were above 10 per cent. for four years. I do not think that the Conservatives should keep raising that issue in case I read out the mortgage rates that people had to pay in the early 1990s. The hon. Member for Twickenham (Dr. Cable) will agree that we must do more to help people who fall into debt. We continue to look at what more we can do. The hon. Gentleman put a direct question about Gershon. Of the Gershon numbers, 45,000 jobs in the civil service have gone, so it is not a question of something that is about to happen—it is happening now. It is part of our desire to drive forward efficiency and get resources to the front line, which I believe we are succeeding in doing. The hon. Gentleman asked about poverty and inequality. Of course, in this global economy, they are huge issues, some of which a national Government can affect, but some of which—these days—a national Government cannot affect. I think he will agree, however, that to have taken 2 million children out of absolute poverty and 1 million children out of relative poverty is a major achievement, given that child poverty trebled in the years of the Conservative Government to more than 4 million. As I announced today, we will continue with additional measures to take people out of poverty. The hon. Gentleman’s points to me about prudence pale into insignificance when I look at his policies. He is promising to cut taxes and to raise spending— [Hon. Members: ““No””.] Every day I read a Liberal press release that promises an additional increase in spending. The hon. Gentleman now says that he wants to cut borrowing—[Interruption.] Behind him, someone is saying that he has a fiscal rule equivalent to that of the Conservatives. The only difference between the hon. Gentleman and the Conservatives is that he has at least admitted that he has to raise £20 billion from environmental taxes. He has at least put the figure out in the public arena, although I have to tell him that he would have to raise the price of petrol by 18p a litre and I do not think that the Liberals would be elected in any constituency on that platform.